GlobalFoundries Fined for Unauthorized Chip Exports to China
The U.S. Department of Commerce imposed a discounted fine of $500,000 on semiconductor manufacturer GlobalFoundries (NASDAQ: GFS) for exporting chips to a Chinese company without obtaining the necessary license. The company, listed on NASDAQ: GFS, reportedly made 74 shipments valued at $17.1 million to an unnamed firm on the Bureau of Industry and Security's Entity List. According to regulations, a license is required to export to companies on this list, and GlobalFoundries did not obtain this license.
The Department of Commerce announced the penalty on Friday, emphasizing the necessity of complying with export regulations, particularly concerning entities subject to trade restrictions. The shipments in question highlight the ongoing scrutiny and regulatory challenges faced by technology companies operating in international trade, especially those dealing with sensitive technologies and regions subject to U.S. export controls. The imposed monetary penalty serves as a reminder of the importance of adhering to international trade laws and the consequences of failing to do so.